Power of Attorney: How Much Should Be Out In The Open? (Part I)

    Having named her niece Milly as her Attorney in Fact, Aunt Gertrude feels so much more secure knowing that there is someone who will ‘look out’ for her in the future. And the family members are all so proud of Milly for stepping up to the plate to help. Aunt Gertrude’s bills are being paid on time, she has a quiet confidence in Milly plus she has the peace of mind knowing that Milly is looking out for her best interests.

    So who is keeping an eye on Milly?

    “Oh, we don’t have to worry about that. She’s family” is the resounding answer I hear when I ask that question of family members.

    “Aunt Gertrude and Milly have been close since Milly was a toddler” is a typical response. And I want to believe the best about Milly. I do. We all do. After all, its much easier to have Milly carrying the load. The family trusts her. And the family knows that Aunt Gertrude is cared for.

    Sort of.

    The real problem is that no one knows exactly what Milly is doing. And Milly has no oversight. Milly may be the best thing since sliced bread. And she may not be. Once an attorney in fact takes actions on behalf of the principal, here, Milly acting for Aunt Gertrude, she quickly learns that the power of attorney document is all she needs. She can take whatever actions she chooses, limited only by the document. And the power of attorney is a powerful document. There are very few limits on what she can do.

    Families often feel uncomfortable asking a “Milly“ what is happening with Aunt Gertrude’s finances, even when they suspect foul play. They feel they are meddling, and they don’t want to get involved. But that may be exactly what is needed.

    We are going to investigate two ways that an attorney in fact is limited in what actions he  or she may take. One which is statutory and one which is new.

    Please keep sharing your stories with us, or leave a comment on our blog. We want to help our senior citizens live a happy, full life.

Senior Citizen Abuse Without A Scratch

    When you hear the phrase “Senior Citizen Abuse” your mind conjures up an image. That’s the way our minds work. When I say “dog,” you don’t think of the letters D - O - G. You picture a dog. If I say “Big brown dog” your image changes. “Big brown muddy-pawed snarling dog” and it changes again, and so on.

    I want to paint you a new picture of “Senior Citizen Abuse.” Or perhaps an alternative to the picture you now have. This Senior Citizen Abuse doesn’t include being yelled at by a mean step-sister. It doesn’t include withholding food or attention, or neglect. It is white collar in nature.

    Aunt Gertrude, who needs assistance, appoints Milly as her attorney in fact through a Power of Attorney document. Aunt Gertrude doesn’t get around as well as she used to and her vision isn’t what it was in her younger days, so she is so very thankful for her niece, Milly. Milly goes to the store to pick up her Aunt’s groceries and prescriptions. She reads her Aunt’s mail to her and sometimes even does cleaning at her house. Aunt Gertrude says she is a real blessing.

    What Aunt Gertrude doesn’t know is that Milly is robbing her blind. You see, Milly, as the attorney in fact, can write checks on Aunt Gertrude’s checking account. So when Milly goes to the grocery store for her aunt, she does her own grocery shopping as well. And though Aunt Gertrude is eligible for a better vision plan under her health care plan, she doesn’t know it. Milly didn’t read that letter to her Aunt. She likes being able to screen all of the information Aunt Gertrude receives. . .like her bank statements and the statements of her meager investments.

    If left unchecked, Milly will empty the investment account and hide the money in one of a hundred ways that are hard to track. Aunt Gertrude may have wanted to leave something to her church or her grandchildren as a legacy. But it won’t be there. And Milly will simply say that it was ‘all used  up’ caring for dear Aunt Gertrude.

I  speak to clients almost daily who know of or strongly suspect this type of abuse. So when you next hear “Senior Citizen Abuse” I want you to picture the sweet niece, Milly, helping her poor Aunt Gertrude, pushing a grocery cart that is unusually full. . .

Keep sharing your comments and stories with us. We’ll all be better equipped to care for the seniors among us.